Refinancing Process Dragging On
Ask Kate: My refinancing process is dragging on and on... Hi Kate, I originally held a 10 year interest-only loan with a nationwide mortgage company. When lending rates began to drop in early 2009, I decided to refinance.
I made contact with the lender who held my loan already and discussed streamlining my loan to a 20 year fixed rate at 4.75%. I submitted all the proper paperwork. -- I will add here that I have refinanced my loan 3 times in 10 years and am well aware of the necessary documents needed.
On May 5th I was charged $470 to begin the refi process. -- I will also add that I have over $90,000 in equity in my home, my credit score is 799, I have no debt, and have $23,000 in my savings account.
Because of these items, I thought this would be a fairly simple streamline loan process. Unfortunately that has not been the case. Today is August 18th and my loan has still not closed.
On June 10th I had received a call from my "loan coordinator" stating that the underwriter requested that I install handrails from my back door to the patio (4 steps). She said this has to be done before June 16th because my interest rate would expire. Although I found the request odd since the loan was held by the same lender ALREADY (without handrails) and my first loan was an FHA and the inspector did not request them. But I had the work completed and found out that the "appraiser" returned to make sure the work had been completed.
On June 23rd I received a letter congratulating me on my approval and that I needed to set up a closing date. When phone calls to my "coordinator" went unreturned I became apprehensive. When contact was finally made, I was told more documentation was needed from me.
The first request was for my W-2's. (I have been with American Airlines for 20 years with no fluctuation in my salary). All in all the other requests were vague and given in 7-10 day spreads which is why this process has lasted so long.
After examining my original paperwork I noticed that there is a DOCUMENT EXPIRATION DATE of August 17, 2008. 2008?? was obviously a mistake, but today is August 18th, 2009. What does this all mean and do I have ANY recourse?
I am now out $470 for a "commitment fee", $350.00 for an appraisal, and $300.00 for railings. Most importantly interest rates have now increased and I feel I have lost on all aspects. What do you suggest?
Kate Answers: Refinancing Process Dragging On
Hi Heidi, You must feel like you have spent a good part of this year attempting to refinance. It's time for a resolution so you can get on with your life!
Here is what I suggest as far as recovering your deposits. I would go over your coordinator's head. Call the mortgage office and ask for the supervisor with authority over your refinance file. Be prepared to explain with dates what happened. And request a refund of your money. Mention that your loan documents were dated for 2008.
Then follow the conversation with a letter detailing the conversation.
If you do not get the response you want, go up the ladder until you discover someone who will both listen and who has the authority to make a decision.
Now you may find that in lieu of getting back your deposit, the lender may offer another concession. So be prepared with a Plan B that would be satisfactory to you, such a negotiating a lower interest rate that you missed out on due to inept processing of your refinance.
Although it's a fact that this will take more of your time, you are going to get the most bang for your buck if you put everything in writing.
You might also want to know how to figure whether a mortgage refi
is worth the cost. Here is one simple way to calculate a break even point.
I have provided links to more refinancing advice at the bottom of this page for your convenience. By all means, please let me know if you have more questions.
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